NiSource (NI) 1 May 192019 Q1 Earnings call transcript

Good day, ladies and gentlemen. And welcome to the First Quarter 2019 NiSource Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference Mr. of and President Vice Hulen, Investor Treasurer. Relations Randy you may begin. Sir

And and call. the good Deranda welcome morning, investor Thanks, XXXX everyone. to quarter NiSource first

me of is our and to and NiSource's Executive update financial Officer. Hamrock, on the are operations, well review purpose Brown, financing first as for quarter an The presentation Chief drivers Financial as plans. Joining Officer this of performance today XXXX, Joe growth Donald Chief provide

your we will for open Following questions. our to on Slides call call prepared available are remarks, today’s the nisource.com.

to those such Before MD&A periodic floor during and the Information expressed forward quick in actual subject turning a will and cause of Factors reminder, could the risks in the uncertainties presentation of over from looking. made concerning is Joe and included Risk statements filings. risks Donald, are statements our that sections results to the just These to SEC be materially some uncertainties and this statements. differ

Additionally, on some this measures. of non-GAAP to the recording relate statements made

most on out on I the including refer a please like and of For slides reconciliation all additional With over schedules call measure GAAP way, Joe. to measures, directly the financial available additional full to comparable segment these our supplemental and of information, the nisource.com. that to turn information would the

across our safety continued system GAAP of on our focus to Thanks of quarter Randy. execution to Good programs and all morning utility XXXX our seven everyone are enhancements our for program. joining our These first report team’s foundation which and I'm pleased infrastructure thank on states. distribution us. the you results, modernization reflect long-term

generation team Valley to to and in support continues our Indiana Merrimack of continue and in we work. strategy addition, the restoration advance II customers communities our Phase our during electric In dedicated

thus we positioned progress NiSource made the commitments XXXX. have for to on deliver is its well far, With

delivered with and non-GAAP X, share operating in first second $X.XX of of net the $X.XX to $X.XX We XXXX. range per Slide in us quarter deliver our operating guidance key versus which quarter expectations to line the positioning turn within early net and share year. earnings a Let’s summarizes $X.XX for our accomplishments to per through earnings XXXX

billion focus to in state share Gas capital in through expect $X XXXX our to growth non-GAAP dividend to XXXX from in with We billion our of X% complete remain guidance. and footprint. through investments confident $X.X of from also X% to annual line enhancements $X.X continue billion earnings and our investments long-term forecast XXXX to system in XXXX XXXX. capital of seven $X.X across annually our a key safety per remain We billion

executing safety or are on our SMS implementation. system management We accelerated

the emphasizing Our and mitigating SMS a U.S. and independent and framework by is Lahud. Transportation assessment Chaired quality oversight petroleum Ray review of institute. pipeline Board operational potential to is operators continual American a approach developed identifying SMS for Secretary aligned have managing the former with established review safety, by implementation we proactively. and improvement risks comprehensive SMS provide our To

report priority. automatic work of backgrounds and a spanning diverse the sense Lahud are designed cause. have Initial completed remains across operating work aviation, can protection, is Lahud industry. honored Secretary with been the off when I'm benefits begun pressurization work on too breakers, These system, they like devices top pressure has operating experience that our I of significant the our they low begun pilot over low all too progress install providing high five expertise they gas has of to shut members. operate pressures is its to through commitment circuit also the and addition on our projects which and that Chair devices systems. member all QRB to that areas. or the immediately down This Mr. so shut and includes regardless In energy to QRB, five experts nuclear agreed

continue has Our work Indiana the Valley continues and capital in expenditure the the retirement in of to repaired regulatory year. mid the And efforts Massachusetts week team our our continues we with was new filed with partial customers related depreciation filed to electric winter first revenue plants. our September program boilers settlement stakeholders annual our regulatory Customer the and and rate on a in receiving weeks our the approvals our Virginia which wind in the strategy last approval. well, Ohio be electric our Merrimack that by heating with filed Tax initiatives replace base as tracker generation filed expected unanimous advance update key awaiting after coal Reform to new addresses XXX and Approximately season finances our the of Ohio. schedules begun with in September installations to with event. of support or applications heating execute modernization XXth application end are in early In gas settlement this base Federal case update farm to in team equipment of completed rate case, requirements the

work. customer team appliances repair community support on Our process and private claims, in effected last property and restore by provide fall’s to heating continues equipment restoration

would our Donald, detail. turn I discuss performance to who like more financial Donald. will the to Now, in over call

Joe, morning, Thanks and everyone. good

and constructive non-GAAP XXXX. trackers. period our impact regulatory modernization earnings on per in $X.XX or results We non-GAAP be Slide financial share to per about, established same of with of first the $XXX or compared the delivered quarter of share performance operating infrastructure million net our for supported million at $XXX infrastructure driver about Looking continues $X.XX X. our long-term outcome biggest The investments by

just turning address segment like incident to Lawrence our expenses. financial Greater I business Before results, would

$X.XX, and have liability settlement legal our on on has are final which of billings financial $X.XX was detailed response upward with construction growth adjustments estimates long-term solid increase our as first confident Our guidance driven this as our results. execution Despite to as XX and regulatory and both XXXX This share front expenses. expenses reaffirming quarter reserves in are well what for we earnings operating we than net quarter XXXX strong as forecast. non-GAAP adjustment, Slide fourth dividend to range our higher our the provided with emergency results made coupled earnings by of for per

current to financing expect maintain also We our plan.

we we previously Greater portion have cost. million our stated, a we As XXX substantial coverage have of will million the $XXX insurance that for recover incident of property Lawrence and insurance cash of expect

claims in XXXX, XXst. We million have recorded recoveries casualty of have March and submitting started through $XXX insurance December

and around We have also provided claims notice recovery the begun. property insurer and discussions have to our

to recovery our on move insurance the provide will progress. updates process As forward quarterly continue we

the Let's results our financial for segment. business now non-GAAP to turn

in The Our gas has driven quarter. increase was about about of program $XX by million the distribution the outcomes operating of XXXX. Compared execution. operation with for segments regulatory and replacement earnings for $XXX million primarily same period infrastructure $XXX million

operation quarter tracked of driven for This lower about expenses million the about for investments infrastructure period O&M with million reduced reported in $XX segment electric by offset earnings primarily XXXX. earnings $XX operating operating usage. compared of by and increase Our the comparable customer slightly

Now credit our to touch on turning briefly I Slide to would profile. debt and like X.

long-term and as about the level we debt. of the interest debt XX billion XXst our total capacity years securitizations. receivable $X first Our was about of the $X.X credit billion maintained was long-term quarter $X of which average debt of cash our under maturity consisting was and approximately on weighted The about weighted rate available facility of average liquidity accounts was billion available approximately X.X%. net At end and our March

to are and rating three ratings financing for are from credit ratings. we investments. to grade turn which current investment plan grade now X, all growth agencies committed like covers major our would long-term investment Slide maintaining our Our to our I

other $XXX $XXX from equity range our million Our issuance aftermarket in from or and our current to to employee debt. $XX purchase plan include equity million stock million plus programs, continues to long-term program annual incremental million $XX the of and ATM

is Our in our by end infrastructure to to million through approach to provide issue consistent balance for investments. with up ATM allows $XXX our equity predictable current financing us program The the ATM of operations beyond. our is of XX% XX% credit XXXX. to our plan the metrics from funds debt profile strengthening and to XXXX in range enhance expected to to financing Execution our

a Joe and highlights. discuss call regulatory to will infrastructure turn will I the investments Now, back who few

you Donald. Thank

tracker. infrastructure to for XXXX gas turn million to costs we case, early increase parties our filed unanimous expected our If recover quarter agreement second which currently our the August with the changes Commission. ongoing quarter annual revenues with on rate million through infrastructure collected programs to first specific let’s from incorporate $X.X of request associated Tax including Reform. Filed and from the and settlement XXXX, In to months before remains $X.X Virginia settlement is Virginia Federal Now last Corporation in filed approved some to X. highlights operations State base investment pending our is by seeks revenues in our Slide

effect with refund subject the New billing rates to went February into cycle.

and expect order in Ohio We Public in deferred PUCL second begin remains to investments a is capital half of plans XXXX, in Ohio, invested application of invested us utility annual in approximately the our application well was customer pipe to Also before of that related Ohio recovered $XXX recover of $XXX XXXX week $XXX we replacement PHMSA regulatory our million million XXXX last are of to program of allowing commission. capital received approval us infrastructure In A first annual expected expected commission in XXXX. compliance infrastructure recovery investments our XXXX. expenses adjustments seeks tracker the XXXX. Indiana through approximately tracker. XXXX. This made program between order the Indiana regulatory established our and CEP In to pipeline of lines. approved infrastructure in by mainline which first in service allows replacement The Utilities recovery program writer be targeted to August not for replacement capital and we expenditure covers million being covering Commission authorized through adjustment The modernization of XXXX writer. approximately filed pending our of capital to priority February adjustments

incident. XXXX. second We order take expecting replacement chooses. this regulatory XXXX I And rates the not and and in recovery Greater calendar of of million related month. yesterday, capital $XX would of done investments priority to that be of this recovers received this Lawrence authorizes effect capital our will year incremental Enhancement the approval not This just new does XXXX pipe Plan System recovery that cost and and note we order an investment include the order half Gas

our let's Slide X. electric Now on turn to operations

our order earlier, our integrated partial in earnings return second April is which anticipated and plants mentioned agreement the the before I allows file addresses IURC. related schedules is for coal-fired case, early on we settlement requirement Reform approved settlement revenue, If As is a on Federal Tax generation retirement IURC XXth the of for electric base X.X%. depreciation, our The rate to filed pending equity settlement of XXXX. called and resource. the our of in in An half XXXX neutral remains

and coal-fired Resource the renewable Indiana seeking the wind, the fully three retired remain Plan, filings the fall. is orders our Jordan years, as energy in with nearly lower-cost five still developers wind for remaining Creek, Bison experienced consistent generation totaling our Our and filings and portfolio capacity retirement expected XXX develop being of point quarter late to Roaming XXXX. by The Xst These XXXX. to capacity energy technology. IRP submitted all in by The February toward next nameplate capacity in such resources, renewable in with IURC, have The generation partnership farm Rosewater, defined in with pending coal approval Integrated battery the XXXX. three before replacement and are to XX% storage operation solar expected projects, be XXXX and megawatts options calls made last IURC to of of third be are

expect a renewable projects this We second of to RFPs our announce and round year. later issue additional

electric maintaining to supply future market most while diversity flexibility for reliability, changes. goal to the is and Our cleanest economical technology and available, transition mix

generating last an quarter. facilities Our approved coal to represents IURC investment settlement recovery million The into XXXX first December with approximately meet substantially authorizing upgrades of the These environmental standards. current capital in of are and and in EPA of projects include combustion three complete service the residuals at these associated cost. $XXX projects its projects placed the units

safety program be electric We electric infrastructure includes $X.X XXXX. billion continue investments to reliability. improved electric to IURC enhancements system designed through and and system to further our disc distribution our key approximately approved to year The seven which program, infrastructure expected of represents execute modernization transmission on made

should quarter order January Our of the tracker and DISC note underlies XXXX is there latest and before gas programs The in in law of filed investments made several I our T and further infrastructure electric in second November XXXX. expected update modernization constructive XXXX, IURC. that incremental to Statue. And covering $XX approximately request is the which Indiana, from supports which make changes capital NIPSCO. remains legislation new at million pending through the June

some Enrolled in legislation XXXX House be included clarity Act For around can provides T plans. what DISC

proposed plan are DISC putting the for timeline filing quarter resulted a steps the we in day a determining expected with gas Our filing team together to next a electric and is T XXXX plan. new of third

the We will continue through current XXXX. the well current XXXX to execute plan approved gas as on approved electric as plan through

a the to Before a named XXXX based that touch few grow a career. recognized I'm Forbes I as independent our quarter, plus last I on Best consecutive list share place on to build survey month Americas the for quick that NiSource Employers. pleased Large employees was is Magazine’s list, which Company of our reinforces to an on key great will takeaways the fourth work, year and employee for Inclusion updates. report this

dedicated team customers, our is building investors. value Our our to and for communities our

Board you to we Board check and which build annual are XXXX to already for NiSource.com. would including and and and who last Rich Chairman. inspiring Directors continuing and at is financial our served If on is commitments this encourage The enhance having years last since environmental thank NiSource report, our best retirement. deliver to published thoughtful shares the month month the you sustainability culture in come. from on done XXXX in to report I after missed the wish six out leadership as recognize we upgrades NiSource Rich invest the his years retiring haven’t and of and also enhancements, how well Thomson be infrastructure I safety will so, available our integrated His like the of we in

let the to questions, open are your to We just share about line key ready our but me takeaways.

start of results the a strong on We in XXXX solid terms and are both business each in execution in front off to our our financial regulatory segment.

reaffirming non-GAAP and $X.XX confident and plan. As net are $X.XX we range our a per guidance a a share earnings result, our XXXX of financing to operating

investment driven growth plan resilient. is and long-term intact Our

and and we remains to grade do independent both that all for we SMS our X% to communities by and advancing operating from annually our foundation grow implementation our across We expect our the accelerated and expect investment continue our credit through that share dividend ratings. for state Review maintain XXXX to net XXXX earnings per commitment customers Safety our a we and we X% seven are serve Quality with footprint strong oversight from to Board.

We rate our making partial generation strategy projects. our and electric business settlement with our in significant wind base our advancing progress case of are with

your you way committed are continue for Merrimack interest ongoing and restoration NiSource. right finishing and we support our support to We to the the there. Valley in customers in Thank communities the participating as of today for

take ready are Deranda. We to questions. now your

from Michael question first Our Instructions] Weinstein comes from [Operator you. Thank Credit Suisse.

open. now is line Your

if the and Vectren in is filed could little are good bit you the of IRP that need. you had of differences a field certificate between how their wondering, discuss Hi recently morning. CCGT guys doing, I’m about you a one and this that Mike, rejection Indiana

processes You learned does IRP two from your and from the are the know here? of what how happened combination have differ lessons that the maybe that

as that through with stands and RFPs And first capacity but year to the and stakeholder IRP, I And an transact our broadest options for in the replacement will be a on IURC to process saw round next what a our up is CPCN in process and evaluates for to Yes. all us well that participation. our viable believe going principles later will Vectren that will Thanks what throughout particular earlier our capacity that year this follow approach of forward. this included RFP the those are an entire possible for best won't transparent I this filings the IRP have able strategy. embracing the as consistent principle filings, market solutions then approach of show opine the course continue evaluation we move we expectation that noted of replacement RFP about and with of I for Mike. through available including we the tested the continue talk last our

value all approach think our I of the and stakeholders IURC in that and been very engaged have approach throughout. that

same of guess that I And some in on the coal of subject about going do the particular state the of what SPXXX, seed the political industry power think the lobby and you forward? says

interest and various welcome putting to of can surprising, their our sure would we well that all country. approach certainly table course that know measure all forward unexpected the particular, we as transparent it picture complex the see not not try pretty I possible. what transition the and on but discuss think You it's across that that as protect and would and risks options say opportunity that dynamic again groups and to it's any in all welcome the in on in as making objective through up I and And the by Indiana we move general stands this

same try we for you you time type new Do dead moratorium think of for see is builds think this a a issue achieve that that or being? will of that thing to do the the replacement

that we will one on case. look we we to and that be before, continue try to moratorium right is to that. the I we on off predict were does appear proceeding that think are that monitor we attractive and all course it's table to here expect the the too now, on early activities, to those forward of all It but more continue the will

That I Okay, for you Thank now. great. all is have very much.

Mike. Thanks

from Bank America. of line from question the comes Dumoulin-Smith next of Julien Our

open. Your line is

good morning. Excellent. Hey

just about clear be So I about. just wanted asking to was Michael actually

this legislative the about there can process Indiana come to as companies are to are to what implications to whole At issues out and remaining here, present. of the settlement existing any that plans close about maybe you items sort just very end the peer the not you are just and a to talk - weren’t or through just your or and back settled have here in electric that again talk and that So the they remaining procurement the look side. of if issues filed more future and on bit discreet respect with you go go And little out? let's day

I implications again don’t significant for Yes see us. thing. Sure

all that is and circumstances evaluation set company the along operating unique the in assets, said drive see other assets, have our really We IRP to to of you the age and each that of unique that can’t any of retirement factors transpose process conditions going our a company. general, that is of on the our

of we clear expect to substantially of kind I We that. did and us to all through all of think we as picture to progression transparency retirements are replacement I earlier noted earlier, market, with the to change agree pretty think that commit will as and And given so capacity of that overtime. that. this we I available options I so the in the to step as is options ensure said that the sequence we all of us process front have and a transparent would I continue we test looking at wouldn’t

our here. as situation. for setup to out don’t we the to to have we this outlook. and I noted of further horizon this substantially a navigate so the And So time stakeholder position I in of the review good earlier, really on lot us, the dynamics the is we at are expect process a change think legislature

policy our generation schedule. our remind issue to designed as this retirement that us with core, would at beginning As align at it being was the the assets very us and the to it strategy. relates the depreciation core IRP a generation relates its case The for I case, rate of to

requirements key With the which The have related and are not that to sets the the puzzle among of place, to it the is in revenue setting revenue of complex. always as issues for which the that relates allocation the we customer partial open point, groups, has settlement effectively overall requirements strategy. solved that most but us not is important piece

the in is that to facilitate that And may is case. continue that ultimately process what is the something parties for. will We in and okay, is that result litigated the support is And that the then communicating the puzzle. us of industrial within that up that revenue the tariff is for we industrial a piece other for of set large allocation part question

with We continue to parties work on as well. that

position with to fronts that? the that relationship the about in the that good anything case rate it IRP, we add the wind as and feel settlements here on to CPC rate case we relates in want the to are we So have. Donald you all

we and gap had Yes. last projects I including year. have that that really that about think those the on ran we the for fill for down process that the they would we have year projects, current add contracted filed on were plants a shut last to RFP approval IRP we Bailey with our

to think XXXX, plan And issue as we will so we we IRP resources through go replace that units out. close on going Schahfer to seek RFP another to when need to and the we supply about generation process forward retiring another in

opportunity we the forward. year our structure to state our as stakeholders sure around of for our and in us have all in plans make clarity going the understand others the and so our So, that process, process RFP an last Vectren and that next as give feedback old well to markets on IRP it’s

basic I can little the of of side elaborate on increases equation. that. you level follow-up just of If more latest the round total confidence on the Can cost your a just in on Excellent. bit

and timing separately far? most I increase. know me I financing is any financing latest you little on in decisions, difficult If and the rate imagine just can strategic bit for or that implications this a then case, progress is

view. emergency this which and prior legal in quarter, from part drove I the take several earlier on include cost adjusting up ask financing. the as cost, current these for rate but to let construction important annual the financing And long-term growth maintaining well Julien are our plan. we touched that finalizing adjustments, were confident note is reaffirming XXXX I as this estimates. drivers us on reserves always will to and estimates it's key guidance And current Donald and despite in our our Yes, touch remarks, of think include response liability regulatory that recoveries cost outcomes first and the Those insurance timing our the factors drivers I relates settlement now timing to approximately that as will cycle Donald and flows on change note also are range me out timing and financing and it the billing based and in cash were factors we to in include of our within XX% the and here.

of continue in of will relates quarter this we rearview than as do we continue Donald. feel these put it the factors, provide all more each to like So mirror to to I but not. updates

Yes.

third-party with those it, as parties, be providers the tower having said those were updated we to all having and up and our around the progressing just around it's updated have weekly are be look conversation recovery, were in settlements And the have steady, quarters. different in estimates Joe's as continue between on look and having to will certainly progress we got working very insurance in there constructive Joe those we comment are is insurance could future started items tower. of the got, with forward but think we we information, that continue I at discussions parties and we estimates claimants, discussions we the more that the that

reserves on continue to in to and got the that well. move we confidence we we and side on that forward have there as get insurance on other claims So our from a side litigation path are moving recovery

And Julien, the you regulatory. about asked

as investments in this pipeline any to the Valley. about made Massachusetts, Merrimack in regulatory in point haven't replacement the at relates We plans decisions it

and working have that property our on the determination before and we before, we here, with we we noted noted to insurance As as will process is any make front. on it that go regulatory side are

Excellent. leave for very it Thank patience. there. Alright, I much your you will

a day. Have you. great Thank

Sachs. Insoo from question comes next Goldman from Our Kim

open. Your line is

you. Thank

time potentially back be you that why not. going acknowledging what the a from from elaborate on estimates on did to filed been to claims that and increase you given third-party has on difficult increase been this fluctuate or been that level below settlement to more the Just the comprehensive it's face up claims, the a bit does seems value Could from negotiations really from cost shift, the the quarter some any just could estimate they quarter larger based just it - had failed, fourth the guys have to estimated. get at that? And has come that

So and recovery each through the made there there. go process let’s how insurance with to start on the a understand process. claims, is cost claims Certainly we claim, decisions the

consistent. first providers and has been of and our The couple tower insurance very constructive

we We any for cost significant that haven’t seen the concerns events construction the at this point about incurred restoration and the events year. last

process to continue are walk now and estimates process to the have are through seeing our provider the going get we we all But confident will and their the costs full provided it’s they and as process and as so we work those so through provided-by-provider insurance all with each this that to of have certainly our costs. of point claims. conversations at that comfort of And through really information we in they the amount

and reserves, the conversations. On having is the would other big third-party claims the of change timing litigation I say really

here finishing You municipalities that still or and third-parties, at other to allowed quarter. having time had in the first were is different with year whether and up have us we we litigation the claims start have really end, the were - the it at quarter the first conversations think larger in here reserves that about restoration we the that where so reserves

significant were injury so third-parties. to one the it is different conversations we the about this continue estimate So reserve the will more have in of able our did that that and certainly with to have announcement week earlier and settle we claims

XXXX know Understood the and plan financing give XXXX. and could you I preferred front, then any always that level for of equity front, on a on know hasn’t is kind but I there TBD really it’s could you changed, any the amount or clarity give

that year flow Yes insurance said amount it’s the cash depend and on amount may need timing of equity still early, the recovery. the will preferred in of the we particular this as we and

at it’s but still that So it’s looking year. something are this too as we an point, early opportunity at this

Thank much. it. you Got very

Yes.

Turnure JP comes question next Our from from Morgan. Christopher

is open. Your line

of wanted the been your there on of will how I the how term answered, side on to plans, but DISC? HPXXXX together comments Thank your you. of think Most longer exploration sell on questions and kind with impacts the have existing I of kind Joe your gas that of my filing come in T follow-up end

Yes.

Chris So that targeted good opportunities substantial for which provides well as side, now economic morning. electric investments on as the a eligible The DISC it also us brings electric investments passed feature. is technology great development statue on thanks advanced investments, regarding T of side, all for the clarity is

the we through where runs as at new plant, to be are plan gas would So cycle we look a XXXX. the current updating want anyways, we since in

So it to will file speak. next just set so us plan, up to the for

legislation. that new side, or the the that On file may exist we options exist plan there. or we not as a the result might And might the evaluating a are electric opportunities of may

that, because evaluate We the runs XXXX. through continuing to electric are plant

the value that much through how that clarity for of more step it brings provide it's the stakeholders So couple we all as about might in next years.

had. Okay, I Thank Joe. all great. That's you

a Thank Chris. Have day. good Alright. you,

Wolfe Our Research. next comes from Steven Fleishman question from

open. line is Your

a or of kind reflection to is of insurance - the the more us timing million Hey, morning. that Is the you you getting on really but the comfort do little in credit. of of just recoveries? and $XXX rest insurance a change of business little no have confident doing plan maybe a increase, couple better back could on level your tie that good financing are you so Hi, just kind

morning. Good Steve. Thanks

continue which I the to will think as the with cash plan. same have seeking providers on as from different of continue we our our depreciation then right, insurance on have the That, flows cash the getting look side, think the rate that the work that in the costs closure settlement those in confidence we as back annually especially incurred. But at insurance regulatory acceleration that's both well case, has the to with we XXX of got. for long-term providers to business, having positive at that impact plants partial also forward a I having initially we items, ultimately, progress million the conversations electric insurance NIPSCO and timing the property offset helps got and we we really higher have time, our recovery our

you guess, more come is do certainly or future I point and the of what Okay, enough to credit? unlikely? risk - to preserve and stuff certainty add now we future have increases risk, where guess financing in you the with that's do have to Or other to you that enough I deal visibility quarters a have

that reserves I'm from Yes, to the not with say could have we have we as continue I change think estimates going settlement discussions got always we in it's information third-parties. confident time. we have But our not and are at down we the possible. now, this reserves

of timing the to going about If depending it's on financing, change you again, insurance recoveries. think really

we XXXX our equity our And so that's ensure and for a and content really in XXXX more impact needing long-term timing to this that impact plan. between, XXXX might doesn’t financing year, but targets hit

Okay thank you.

next Guggenheim from question Shahriar comes from Our Pourreza Partners.

Your line is open.

guys. Hey

think so is you guess what around jumped have case obviously increasing. case? the claims higher lag you still With a back discussions you ask the I but I'm rate me on and have thinking is guys have recoveries, on Massachusetts, I a it, let sort level you - some you sense filing your most trying up of of are holding about increase guys how the So of in a get to insurance in touched from because rate the confidence

I a activities. of restoration wouldn’t progressing being are through we held series we back, that say are

process claims relates I some there is proceed before of it noted between claims no looking at the establish relationship there. made where we we the want really case And and to we except the to are through strategy rate we a we side, the which for investments issues on regulatory. the properties the insurance As do sure the earlier we make itself,

we order work of So got base we before do a last pull to would side. to on the the Any we determine before we back, settlement thing call back year. have were replacement operations speak did so we think I action I to year that where get even is other of the to the it’s note last regulatory into rate would wouldn’t holding what I some it put best so investments just be course

to but strategy. get best to got have to through, back, it’s things really being we work So some held it’s not about an the process about orderly

maybe just filing? for early we And modeling for you be still about are then should perspective a a XXXX QX from thinking timing -

Yes.

this next we be make before will late I think is what early before year we decisions. said have it year

the was about So case, timing a of it timing a decision. the of about but wasn’t it

Thanks questions. it. Okay got was my guys that main

Thanks appreciate Shahriar. it. I

ISI. Our from next Greg question Evercore comes Gordon from

Your open. line is

Thanks.

questions thorough think Have You day. guys have have I answered. know been you my good pretty a been and what

you Thank too.

[Operator Our Charles from comes Morningstar Research. next question from Instructions] Fishman

open. line Your is

Yes thank you.

at XXXX Just XX, from Is needle the really infrastructure one that enough to periodic or it or your I'm it words your to XXX legislation in insignificant? number cases. in Indiana does quick basis XXX pending one rate points this Joe, as Slide XX% investment material other comes is lower move looking of that XXXX

morning is tell. good That early it’s I too question to Hi great think Charles. a

the back evaluating think few and some a new made to I I about advanced development ago economic minutes features it’s technologies. especially statue, the point of TDISC in around the

legislation. particular, a where have in modernization traditional cases this grid in So grids been might advanced investments for not be some that opportunity would good rate

clarity. us it any could for too evaluate that but it’s will line, right now say that that We to move with early

all got thank That is it. I you. Okay, had

Thank you. Have a day. great

Our next Levi form from question ExodusPoint. Andrew comes

open. now is line Your

on say so. this like that of were but around cost, I'm and is I not - far sorry likely as the increasing because I that missed on that? for kind is of just now, just saying dollars been haven't billion Europe guys, the asking the you significantly kind of everything I liabilities, likelihood really what apologize it guys likely Hi or

Good morning problem. Andy, no

that could our that reserves we discussions have the stated the to certainly litigation settlement reserves I upon well information where and what and discussions as based those as future, got, possible have quarter we this we but progress confident it's are are. continue as think was I that be adjusted the in

is you you I are you claimed been you saying, guess whatever access what taken have filed. not go, what this have estimate and an you So of has is that taken beyond has may So say quarter it where is right? what took actually been

would Yes. estimate were amount It would where of major what third-party going our be claims. the - for be settlement

or is Right filed already okay than what higher is that and not. been

you filed filing? by mean The do what -

like or you claims those mean things to relative I whether like reserved. what lawsuits that know or have amounts Well, you

started cases, Well quarter cases we In they are had been a we results. filing higher of what than some third-parties. having fourth in discussions with but our there hasn’t

So is kind it standpoint of status third-party, as with really legal a well depends discussions. our the on from the as what

don’t possible inflated is Okay. claims last has that. want discussions my then And have question been to it if in you know is experienced just general, that of answer real, around not a or be some this, the could I that but there or you

have of claims they discussions and have understand the claims. how that's part up We their its are made their made to having claims understanding and trying they the really how third-parties their process settlement and constructive conversations, of we are up

Randy follow-up Okay. I will offline.

Joe Its here.

to the other there I and it. other not claims adjustments factors related note would The a driving of things this litigation, all are quarter number is is

to claims So that walk I want don’t just thinking whole adjustment away alone. you was on based

to as there things is costs was booked assistance moving cost, also quarter. last of a some different this earlier, adjustment year, we that ups and of noted inside Donald it some from the that the lot so I of restoration noted, As mutual true have

very Okay. I will much follow-up with guys. Thank you Randy.

a day good Have Thanks. Andy.

have Julien do from follow-up Dumoulin-Smith we a Bank from America. And of

is line Your now open.

expected year. might imagine but Quickly, year based CapEx of just - later adding near your assumption you updated the change that increased. want to reintroduced potentially could relative very for ambiguity some you for the as that baseline could would be file to pushed the it the instance come TDISC and I actually earlier back sorry current have year? I you for out I doesn’t to is in what the about suspect greater itself, reason this guys, just think that and and that been to adding TDISC reasoning your later Hey given you the on this it, plan back than CapEx how understand see that legislation that the

about talking the you Are gas Julien? side Yes.

sides. both Admittedly

Okay, yes.

pretty through filings. the small back On as we have adjusted I clarity gas enough cast of don’t originally Keep mind changes plan are various the and sort think in filed. what to side, original in possibly the we go we back those

a even we a kind shift was So if back not to were it there. it’s of where significant

interesting it’s with to but early side as little more electric clarity. the of say and advanced those, at technologies On look a too that possibly we some

you. Alright. there. I will it leave Thank

Thank you.

call I'm this to showing turn no time. at further I now Joe CEO Hamrock, questions would the to like remarks. for over closing

and continued of of interest all for thanks great support and NiSource. Deranda you Have Thank your day. your participation you in a today in,

concludes in program. for conference you thank today’s gentlemen and the participating this Ladies

disconnect day. wonderful a may and You have